Germany's Merkel: Govts Need Coordinated Exit Strategies
By Patrick McGroarty, Of DOW JONES NEWSWIRES
BERLIN -(Dow Jones)- Governments worldwide will need "coordinated exit
strategies" as they emerge from the economic crisis, German Chancellor Angela
Merkel said at a conference Friday.
"The crisis has not yet been overcome," Merkel said, adding that economic
weakness will continue to impact the labor market and that political
disagreement over the best solutions is inevitable.
-By Patrick McGroarty, Dow Jones Newswires; +49-30-288-84128;
patrick.mcgroarty@dowjones.com
(Adds further comment from Merkel, detail)
BERLIN -(Dow Jones)- Governments worldwide need to design "coordinated exit
strategies" as they emerge from the economic crisis, German Chancellor Angela
Merkel said at a conference Friday.
"The crisis has not yet been overcome," Merkel said, adding that Germany's
economy would contract this year by "at least 4.5%."
The German finance ministry predicted Friday that unemployment could rise next
year even as the economy grows. Merkel acknowledged that the crisis will
continue to impact Germany's job market and occupy policy makers for "some time
yet."
"The exit scenarios that we must make decisions on will continue to be argued
over very strongly," Merkel said.
Urging commercial banks to lend is a particularly urgent challenge, Merkel
said, adding that her government wants to create a "credit mediator" to lessen
the danger of a credit crunch.
On Wednesday, Merkel announced a Dec. 2 meeting to bring together banks,
businesses and trade unions to discuss methods for overcoming the economic and
financial crisis. Economics Minister Rainer Bruederle said Thursday that urging
banks to avoid a credit crunch would be a focus of the meeting.
On climate change, Merkel said she would work to make a conference next month
in Copenhagen a "success," despite the decision Sunday by world leaders gathered
in Asia not to agree to binding emissions reductions this year.
-By Patrick McGroarty, Dow Jones Newswires; +49-30-288-84128;
patrick.mcgroarty@dowjones.com
(END) Dow Jones Newswires
11-20-090506ET
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